FlyCode Blog

Churn is a term that has become synonymous with the challenges faced by subscription-based businesses. Traditionally, churn has been categorized into two main types: active and passive. However, a new, nuanced form of churn is emerging, reflecting the complex dynamics of customer behavior and engagement. Let's explore these three distinct types of churn and delve into the implications of this evolving landscape.

The subscription business model has taken the world by storm. From media streaming services to monthly product boxes, subscriptions are an integral part of modern commerce. However, with the rise of this business model comes a significant challenge: passive churn.

Churn rate, defined as the percentage of subscribers who discontinue their subscriptions within a given time period, is a critical metric for subscription businesses. While it's common to view churn as something to minimize, the reality is more nuanced. Both too much churn and too little churn can signal underlying issues. Let's delve into what constitutes optimal churn levels and how to achieve a balanced approach.